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COMMERCIAL DOCUMENTATION & PROCESSING TIMELINE
Please find below a timeline of what you should expect when buying or refinancing a commercial property. As with any loan process the estimates dates could be varied slightly based on unforseen circumstances. We promise to work with you to deliver the best product for your situation. Also, please keep in mind that the 60 day commercial loan process begins once the necessary documents are received. Also, during your commercial transactions you may incur addtional costs that were not expected while starting this process. Additional costs may also occur for loans requiring a quicker closing time that would be normally performed.
COMMERCIAL FINANCING TIMELINE/Series of Events
Days 1-3
- Intitial Conversation/Contact
- Collection of Necessary Documents
Week 1
- Submit loan to Lenders
- Receive Letter of Intent (LOI) From Lenders
Week 2-3
- Have customer sign LOI and return to Lender
- Sign Necessary loan processing documents
Week 4
- Order Appraisal
Week 5
- Appraiser to visit subject property
Week 6-7
- Appraisal report returned to Lender
Week 7
- Final Underwriting and doc preparation
- Legal work ordered and completed (title search)
- Order Insurance and collection of insurance binder
Week 8
- Final commitment from Lender
- Closing
*Commercial closings are estimates for 60 day processing period.
* Multi Family closing can often occur in 45 days.
DOCUMENTATION FOR COMMERCIAL LOANS
Investment Property
Any property where rents are collected and is the main source of paying the mortgage and other property related expenses.
Required for issuing a lender letter of interest (LOI) or pre-approval which details rate and terms: - Rent Roll / Schedule of Leases
- 3 years P&L (or appropriate schedule from tax return)
- 3 years personal tax returns for personal guarantor(s)
- Personal financial statement for personal guarantor(s) (or residential loan application)
- Purchase contract (if a purchase)
- Credit report (tri-merged, we will run)
After initial review we will also need: - Lease agreements
- Appraisal
- Insurance information
- Payoff information
Owner-Occupied Property
Any property where the source of loan repayment is the owners business (even if held as a separate entity). If the property is partly leased and part owner occupied, you will need to provide everything required in both sections.
Required for issuing a lender letter of interest (LOI) or pre-approval which details rate and terms: equired for issuing a letter of interest (LOI) which details rate and terms: - 3 years business P&L and Balance Sheet
- 3 years business tax returns
- 3 years personal tax returns for personal guarantor(s)
- Personal financial statement for personal guarantor(s) (or residential loan application)
- Purchase contract (if a purchase)
- Credit report (tri-merged, we will run)
After initial review we will also need: - Appraisal
- Insurance information
- Payoff information
New Construction or Substantial Rehabilitation: - Brief executive summary explaining use and income source from the property and background of the organization to be the proposed real estate.
- Simple recap of Construction Costs.
- Plans and Specifications for construction.
- Most current rent roll if the loan is for acquisitions with substantial rehabilitation.
Some lenders may also require additional documentation such as resumes for all principals, environmental reports, photos, old appraisals, additional operating history, letters of explanation, aging reports, etc.
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